The question might seem simple at first, but the answer depends on numerous factors. Among them: how long in advance you are booking your yacht charter, what your personal and professional situation is, and of course how risk-averse you are.

As with many other travel cancellation insurances, a yacht charter cancellation plan is not mandatory. Deciding whether you need one or not may sometimes seem like a gamble. 

Do you prefer to be careful than sorry? Or are you optimistic at heart? What are the risks and what can be covered? In this guide, we explain how cancellation insurances for yacht charter work so that you have all the information to make a smart decision that fits your situation.

Why would you need a travel cancellation insurance for your yacht charter?

The short answer: it’s better be safe than sorry. 

You need to check when you and your family or friends can take your annual leave. Then you need to find a yacht and a destination that satisfies everyone. And finally, you need to make sure you, your relatives, and the boat are available at the same time.

Which is easier said than done.

Add on top of that the best season to sail your destination, the choice of itinerary, and the fame of your yacht. It’s easy to understand why yacht charters bookings are made months and sometimes years before the actual departure.

The issue? A lot can happen between the time you are booking your trip and the moment you set a foot onboard.

And among the issues you might face, some can seriously hinder your holidays.

The unexpected is impossible to anticipate

Personal and professional issues you could face before the trip


You could be very sick a few days before your yacht charter, preventing you from even considering taking a plane to go where your boat is moored. One of your relatives or yourself could suffer an accident, even minor, only a few weeks before your cruise. 

A participant could lose his job and become unable to afford his yacht charter anymore.

Or your employer could send you on an urgent mission on the same dates of the cruise you have booked.

What costs are covered in a yacht charter cancellation insurance?

Always make sure with your insurer or your charter company which costs you want to include in your yacht charter cancellation insurance.

The full amount of the charter can be covered if it is what you are looking for including the cost of the yacht charter itself, but also the VAT or taxes if there is any, the Advance Provisioning Allowance (APA) you have already paid. 

So your yacht charter cancellation insurance can cover up to 100% of your trip value.

Which events are usually excluded?

Again, always read carefully the conditions of your policy as excluded events for trip cancellation insurances vary from one contract to another. However, most policies exclude some events that we could broadly classify as force majeure events.

These events include war and warlike events such as political unrest or terrorist acts. Policies usually also exclude strikes, lockouts, and events resulting from acts of governments. Cancellation due to radioactivity, biochemicals, or pandemics is also often excluded.

Of course, contracts also exclude or partially exclude any event that results from the gross negligence of the policyholder or behaviors that caused the occurrence of an insured event.

Can a yacht charter cancellation insurance cover travel restrictions caused by Covid-19?

Usually insurance exclude pandemic from their conditions.

But all of them will cover you if you get sick before departure, preventing you from traveling, even during a pandemic such as Covid-19. It is also possible to benefit from cancellation insurance in case of failure to pass a temperature check before a flight that would result in the inability to reach the destination.

The insurance matter during a pandemic is complex and evolving quickly. If you have any doubt, contact us so that we can recommend you yacht charter cancellation insurers we usually work with.

How much is a yacht charter cancellation insurance?

The cost varies depending on the variables involved in risk calculation, the duration of your charter, and of course the overall amount to insure.

The fee is usually from 6% to 20% of the total value of your trip.

Although this looks very expensive, keep in mind that even high ends credit cards that offer insurance have very restrictive policies with low reimbursement limits. 

We recommend checking also with your bank the terms and conditions of your credit card insurance. It is a good idea to pay partly or entirely for your trip with such a card. The trip cancellation insurance might step on top of that.

When should you purchase your yacht charter cancellation insurance?

Note that it is important to purchase your cancellation insurance as soon as you have booked your trip. 

Not only to ensure you have insurance straight away but also because some insurers only allow 15 days between your booking date and the confirmation of the insurance contract.